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Following your advice, Peet Ltd. has entered into an FRA agreement with Alpha Ltd. in which Peet Ltd. borrows $ 200,000,000 in 3-month time for

Following your advice, Peet Ltd. has entered into an FRA agreement with Alpha Ltd. in which Peet Ltd. borrows $ 200,000,000 in 3-month time for a period of 6 months, and Alpha Ltd. invests $ 200,000,000 in 3-month time for a period of 6 months. The 3-month interest rate is 1.5% per annum and the 6-month interest rate is 3.5% per annum.

What is the interest rate that both companies locked in?

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